Sarkisov: insurance penetration in armenia will come with the culture of the business

20.09.2013 19:36

RESO insurance company opened the other day a head office in Yerevan. The opening ceremony was attended by Sergey Sarkisiov, Reso Garantia insurance company’s board chairman and a member of RESO board. ARKA news agency asked him several questions about the challenges facing the company. Mr. Sarkisov gladly responded sharing also his thoughts about the prospects of development of insurance market in Armenia.

ARKA - How could you assess the development of Armenian insurance market in recent years?

S. Sarkisov – Obviously, this market could develop faster. So far as I understand it, the citizens do not feel the need to insure their homes, cars, their suburban buildings and businesses. I do not mean mandatory types of insurance. I am sure that only ten percent of local restaurants or shops are insured , while in Europe and the U.S. the figure is 100%.

I believe that insurance penetration in Armenia will come with the culture of the business, when the citizens will finally begin financial planning of their businesses. How can you plan a business , develop it, for example as a store or restaurant , if they are not insured ? If a fire occurs, then you are a bankrupt. This is why all civilized schemes for building financial models make insurance mandatory.ARKA - What are the challenges faced by RESO in Armenia?

S. Sarkisov – The largest challenge is to secure efficient growth. We are not interested in a market share, we are not interested in growth for growth's sake. Business needs to operate efficiently - to make a profit. In this sense, we have not been very good so far.

ARKA - When do you plan to start making profits here?

S. Sarkisov - We had planned to do so a year ago, but did not succeed yet. We put this task each year.

ARKA - What types of insurance do you think are promising in Armenia?

S. Sarkisov – The experience shows that the most promising are the mandatory types of insurance with the focus on business, property, housing and motor transport.

ARKA - Speaking of motor transport, do you think introduction of mandatory car insurance justified itself and do you think s there a need for reform in this area?

S. Sarkisov - Reforms are needed constantly. The one who stops loses, including the government. Therefore, nothing is perfect This is an ongoing process, and I hope that the Association of Insurers of Armenia will actively engage in lobbying of this because the government will not do it. This should be done by the insurance community together with the business community.

ARKA - There has been some decline in investment in the Armenian economy with some investors feeling it is hopeless to make investments here. What do you think about this as a businessman?

S. Sarkisov - We bought a building here, we develop the business. As a businessman, I voted with my money.

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